Def - Debit spreads in IRA's at IB

Discussion in 'Interactive Brokers' started by crackedback, Feb 24, 2004.

  1. Def,

    Was wondering if IB would consider allowing debit spreads in IRA accounts anytime soon or even cash secured credit spreads. I just transferred serious funds and those are some of my favorite strategies to use in my retirement accounts.

    We can trade futures but not debit or credit spreads. Not sure how the risk analysis for account holders was determined on this one. Defined risk (spreads) vs. potential devastation (futures)?

    Hope all is well in the Orient.


    aka Cracked
  2. def

    def Sponsor

    In this case I believe the regulations determine what you can and can't trade in an IRA. I believe debit spreads are not allowed for this reason.
  3. I know that Option Express allows spreads and cash secured put writing in an IRA. Are you sure it's regulatory and not an internal managament decision.

    Is there an area on the IB site that I could present a suggestion that wouldn't end up in the circular file. I really like IB, and would like to be able to trade these particular strategies within the platform.

    Thanks for your time.


  4. def

    def Sponsor

    debit spreads and credit spreads are two different animals. i'm not an expert in this regard and thus i'm not 100% sure.

    For this suggestion, send a mail to help but put IRA in the subject line.
  5. the option experts @ allow this type of trading in an IRA. contact them for details.

  6. I'm in the process of transferring some family IRAs to IB ... recall some time ago someone mentioned that they have placed credit spreads in their IRA at IB.

    If it turns out these are not enabled I'm gonna have real issues.

    Def - we should be able to place condors in an IRA, which are only credit spreads anyway.

    And cash-secured puts go without saying.
  7. def

    def Sponsor

    i'll find all this out and re-post, I assume we offer was is available.
  8. def

    def Sponsor

    i confirmed that you should be able to do credut spreads in an IRA account.
  9. Great. My account will be funded next week so will be able to try firsthand ...
  10. Def,

    I just tried to sell the short legs of a spread and got this message:

    "This account may not hold short stock or naked short call positions."

    Maybe the programmers haven't caught up yet.


    #10     Mar 3, 2004